Federal tax credits 2026
A tax credit reduces the tax you owe. A non-refundable credit can reduce your tax to zero but not below it. A refundable credit can generate a refund even if you owe no tax. Amounts below reflect the 2026 federal parameters.
Credit vs. deduction — quick explainer
A deduction reduces taxable income. A $1,000 deduction saves you $1,000 × your marginal rate (say 33% = $330). A credit reduces tax directly. A 15% federal credit on a $1,000 amount saves you exactly $150, regardless of your bracket. Most federal credits are calculated at the lowest federal rate: 15% in 2026.
Non-refundable credits
These reduce your federal tax owing to zero but cannot create a refund. Each is multiplied by 15% (the lowest federal bracket rate) to get the dollar credit. Unused amounts generally cannot be carried back, though some can be transferred to a spouse or carried forward.
| Credit | 2026 amount | Tax saved (15%) | Key notes |
|---|---|---|---|
| Basic Personal Amount (BPA) | $16,129 – $16,129 (phases based on income) | up to $2,419 | Everyone gets this. Full BPA for income up to ~$173k; phases to $14,538 above $246k. |
| Spouse or common-law partner | up to $16,129 | up to $2,419 | Reduces by spouse's net income. You support them financially. |
| Eligible dependant | up to $16,129 | up to $2,419 | Single parent or caregiver. For one dependant only. Must live with you. |
| Age amount (65+) | $8,790 | up to $1,319 | Phases out at 15% above $44,325 net income; gone above $102,925. |
| Canada Pension Plan (CPP) contributions | $4,034 (max) | $605 | CPP1 max employee contribution. CPP2 contributions get a 15% credit too. |
| Employment Insurance (EI) premiums | $1,049 (max) | $157 | Based on insurable earnings up to $63,200. Quebec residents pay lower EI (QPIP applies). |
| Canada employment amount | $1,433 | $215 | Automatically claimed for employment income. No form needed. |
| Disability Tax Credit (DTC) | $9,872 | up to $1,481 | Must be certified on T2201. Supplement for under-18 ($5,758 extra). Unused portion transferable to supporting person. |
| Caregiver for infirm dependants | $2,616 | up to $392 | For infirm adults (18+) who depend on you. Income tested — reduces if dependant earns over $18,783. |
| Medical expenses | Amount over 3% of net income (or $2,759, whichever is less) | 15% of eligible amount | Prescription drugs, dental, eyecare, travel to get medical treatment, attendant care. 12-month period you choose. |
| Charitable donations | First $200 × 15%; above $200 × 29% | Varies | Donations over $200 get the top marginal federal rate. 5-year carryforward for unused amounts. |
| Tuition (post-secondary) | Eligible tuition fees | 15% of fees | T2202 from institution. Unused credits carry forward indefinitely or transfer to parent/spouse (up to $5,000). |
| Student loan interest | Interest paid on qualifying student loans | 15% of interest | Federal or provincial loans only (not bank loans). 5-year carryforward. |
| First Home Buyers' Tax Credit | $10,000 | $1,500 | First-time buyers of eligible home. Both spouses can split it. Must not have owned in any of the prior 4 years. |
| Home Accessibility Tax Credit | Up to $20,000 | up to $3,000 | Renovations to help seniors or people with disabilities remain at home safely (grab bars, ramps, wider doorways). |
| Canada Caregiver Credit (CCC) | $2,616 (basic) or $7,999 (infirm) | up to $1,200 | For caregivers of infirm spouses, parents, or other relatives. Income tested on the dependant's income. |
| Adoption expenses | Up to $18,210 per child | up to $2,732 | Agency fees, legal costs, travel, translation. Claimed in year adoption order finalized. |
| Volunteer firefighter / search and rescue | $3,000 | $450 | Must perform at least 200 hours of service in the year. |
| Digital news subscription credit | Up to $500 | up to $75 | Subscriptions to qualifying Canadian news outlets (QCJO). 15% credit on up to $500 paid. |
| Northern Residents Deduction | $11/day (basic); $22/day (prescribed zone) | Deduction (not credit) | Actually a deduction, not a credit. For residents of prescribed northern zones. Reduces taxable income. |
Medical expenses — what qualifies
The list of eligible medical expenses is longer than most people expect. Common ones: prescription medications, dental (fillings, extractions, dentures — not cosmetic), prescription eyeglasses and contact lenses, hearing aids, attendant care (if doctor certified), fertility treatments, medical travel (over 40 km if no local equivalent treatment), certain home renovations for disability, and insulin and supplies for diabetes.
You claim the 12-month period that gives you the best result — it doesn't need to align with the calendar year. Costs for your spouse and minor children can be pooled onto one return (the lower-income spouse should claim to minimize the 3% threshold).
Refundable credits
Refundable credits generate a payment from CRA even if you owe no tax. Most are income-tested — they phase out as income rises. You must file a tax return to receive them, even if you have no income.
Canada Child Benefit (CCB)
Up to $7,787/year per child under 6; $6,570 for ages 6–17 (2025–26 benefit year)
Monthly, non-taxable. Based on your July 2025 tax return for the 2025–26 year. Phases out above $36,502 net family income. Child Disability Benefit adds up to $3,322 extra.
GST/HST Credit
Up to $519 (single), $680 (couple), $179 per child under 19 for 2025–26
Quarterly payments in Jan, Apr, Jul, Oct. Phases out above $45,521 net income (single), higher for families. Based on previous year's return.
Canada Workers Benefit (CWB)
Up to $1,518 (single), $2,616 (couple/single parent) for 2026
Requires earned income. Phases in from $3,000, peaks around $25,000, phases out above $33,000 (single). Advanced quarterly payments available (claim on Schedule 6).
Canada Carbon Rebate (CCR)
Amounts vary by province (AB, SK, MB, ON get quarterly rebates)
Also called Climate Action Incentive. Automatic for most; must claim on return for the first time. Only in provinces where the federal carbon pricing backstop applies.
Refundable medical expense supplement
Up to $1,464 (2026)
For low-income earners who have large eligible medical expenses. Requires earned income of at least $4,220. Phases out above $30,572 net income.
Disability Tax Credit supplement (under 18)
$5,758 extra on top of the DTC base
Reduces for amounts claimed for attendant care or care in a facility. The supporting person can claim the unused portion.
File even if you have no income
CCB, GST/HST Credit, CWB, and provincial benefits are only paid if you file. A student with no income, a stay-at-home parent, a newcomer to Canada — all should file to receive these payments. Failing to file is one of the most common and costly mistakes low-income Canadians make.
Savings account deductions and credits
Home Buyers' Plan (HBP)
Withdraw up to $60,000 from RRSP tax-free to buy a first home. Repay over 15 years starting 2 years after withdrawal. No credit directly — the benefit is tax-free access to RRSP savings.
Lifelong Learning Plan (LLP)
Withdraw up to $10,000/year (max $20,000 total) from RRSP to fund full-time education for you or your spouse. Repay over 10 years. Not available for children's education.
Provincial credits
Every province adds its own credits on top of the federal ones. Some of the most significant:
| Province | Notable credits | How to claim |
|---|---|---|
| Ontario | ON-BEN (Ontario Trillium Benefit: OEPTC + OOTC + OSTC), Ontario Senior Homeowners' Property Tax Grant, Ontario Child Benefit, Ontario Jobs Training Tax Credit | Schedule ON479 and Form ON-BEN on T1 |
| British Columbia | BC Climate Action Tax Credit (quarterly, up to $504/family), BC Family Benefit (monthly, income-tested), BC Senior's Home Renovation Credit | Schedule BC479 on T1 |
| Alberta | Alberta Child and Family Benefit (quarterly), Alberta Seniors Benefit, Alberta Carbon Levy Rebate | Schedule AB479 on T1; some auto-issued by provincial government |
| Quebec | Solidarity Tax Credit (refundable, quarterly), Family Allowance (monthly per child), childcare expense credit (up to 78% for low income), work premium credit | TP-1 return filed with Revenu Québec (separate from CRA T1) |
| Nova Scotia / New Brunswick / PEI | Low-income tax reduction, property tax credits, senior benefit programs | Provincial schedules on T1 |
Credits listed are representative, not exhaustive. Provincial amounts change annually. Check your province's official budget or CRA provincial schedule for current amounts.
How to claim
Schedule 1 (federal tax)
Most federal non-refundable credits are calculated on Schedule 1 of the T1 General return. The form walks through each credit line by line.
Provincial schedules (e.g., ON479, BC479)
Provincial credits are on the corresponding provincial schedule. Your tax software will complete these automatically if you answer the provincial questions.
T2201 — Disability Tax Credit
Must be certified by a qualified medical practitioner and approved by CRA before you can claim the DTC. Apply early — approval can take months.
Supporting documents
You don't submit receipts with your return, but keep them for 6 years. CRA can request proof during a review or audit. Medical receipts, charitable donation receipts (T2202, official TA receipts), and T4A slips for bursaries are common requests.
Not sure which credits you qualify for?
A CPA review can find credits you missed in prior years — CRA allows adjustment requests up to 10 years back.
Amounts are 2026 estimates based on CRA indexation. Always verify current year amounts at canada.ca/cra.